Recession talk is heating up as the slumping housing market threatens to shackle free-spending consumers, yet stocks remain near record highs, indicating that many investors see little cause for alarm.
Atlanta Federal Reserve Bank President Dennis Lockhart said on Friday that market turmoil could hit the U.S. economy and a moderation in inflation gave the Fed room to cut interest rates last week.
Prices for luxury goods rose twice as fast as consumer prices this year, a study showed, showing the jet set needs even more to fund its lavish lifestyle.
U.S. consumers boosted their spending at the strongest rate in four months during August and core consumer prices posted their smallest year-on-year rise in 3-1/2 years, the Commerce Department reported on Friday.
Healthy business investment helped the U.S. economy grow at a revised 3.8 percent annual rate in the second quarter, slightly less than previously thought because of brisker demand for foreign goods and services, the Commerce Department said on Thursday.
The U.S. economy grew at a slightly slower but brisk 3.8 percent annual rate in the second quarter, and fresh signs of a surprisingly buoyant job market emerged last week, government reports on Thursday showed.
The International Monetary Fund (IMF) on Wednesday said it expected Chilean economic growth to slow to 5.3 percent next year from 5.8 percent in 2007, but said the economy was well placed to weather external shocks.
The International Monetary Fund (IMF) on Wednesday said it expected Chilean economic growth to slow to 5.3 percent next year from 5.8 percent in 2007, but said the economy was well placed to weather external shocks.
Treasury bonds rose on Monday, and yields dropped as investors looked to lock in gains from last week's strong stock market showing.
The turbulence on global financial markets will clearly affect the UK economy and inflation but it is too early to tell by how much, Bank of England hawk Andrew Sentance said on Monday.
This morning, the British Prime Minister, Gordon Brown gave his assurances that stable economic policies would keep inflation down in the medium to long term.
After a hefty cut in interest rates and the dollar's plunge to new record lows against a surging euro, investors will closely watch data for clues on how seriously problems in credit markets are affecting the real economy. An ailing property market and weaker consumer confidence may herald signs that the credit crunch stemming from problems in the subprime mortgage market may be dragging the economy down making more interest rate cuts a near-certainty.
Gold gained on Monday and hovered near a 28-year high after a weak U.S. dollar spurred buying from investors and speculators, who believed the price could rise further as fundamentals supported the metal.
Treasuries ended the week on a more positive note on Friday, a turnaround following a selloff which began on Tuesday when the U.S. Federal Reserve cut its benchmark interest rate to give a boost to the economy, setting off some inflation concerns.
Wall Street will watch next week for more ripples from the Federal Reserve's half-point cut in interest rates, including any deeper drop in the dollar, and any more spikes in the price of gold and oil.
A steep cut in U.S. interest rates should have eased debt worries but inflation in oil and food prices is a concern.
U.S. Treasury Secretary Henry Paulson said on Friday that a strong U.S. dollar was in American interests and said he was optimistic the U.S. economy would continue to grow this year.
Gold rose to its highest in nearly three decades on Friday as a struggling U.S. dollar lifted its safe-haven appeal and purchases from speculators helped the metal defy selling pressure.Gold hit a 28-year high in Europe on Friday as the dollar's continued slide to record lows versus the euro raised the metal's appeal to speculative investors.
Federal Reserve Chairman Ben Bernanke said on Thursday the central bank slashed interest rates this week to brace the U.S. economy against damage from financial turmoil but warned the outlook remains uncertain.
The cut in the United States’ interest rates would not stop China’s interest rate hike , and would not create greater difficulties to the country’s inflation, said an expert from Morgan Stanley.
Treasuries slid for the third day Wednesday amid expectations that inflation will continue to increase after the U.S. Federal Reserve’s move to lower interest rates.
Data surfacing on Wednesday indicates that consumer prices posted a rare decline in August, while the housing industry saw construction fall to the slowest pace in 12 years.
